Is ITR in name of sole proprietor a proof of business?

Tax queries 3164 views 6 replies

rohan_1987

Proprietor

26 Points Posted on 30 October 2010

I am running a sole proprietorship business since June 2010. The business runs from my home. House is owned by mother.

Context of my problem: In order to open a current account with any large bank like Axis, ICICI, SBI, etc, most of them are asking for two proofs of business in compliance with a recent RBI circular. I already have one proof - Gumasta(Shop & Establishment License). I am searching for another solid proof.

Since my income for the past fy has exceeded the tax-free limit, I am going to file my ITR shortlty(I know its late now).

I have already fixed an appointment with a CA. I am yet to speak to him personally, but his assistant told me that the ITR would be filed in my name(person's name) and not that of business since it is a sole proprietor. In the ITR, I would be disclosing that some portion of my income is through this sole proprietory concern

What I need to know is whether such an ITR filed in my name will constitute a valid proof of business? The CA's assistant told me that it shall be a proof of business. But I want to get opinion from you guys until meet my CA personallty after Diwali.

Replies (6)

Guest

The Income Tax Return is always in the name of the person whose PAN is being furnished in the return...for the name of the business, there is a provision in the ITR for Trade Name, where in you can mention the name of ur business..but prima facie on the Face of the acknowledgement, only the name of the PAN card holder shall be visible..

Guest

i dont think, that the banks will question u regarding y the name of the business is not visible...coz being the propreitor, the business is in ur name and the PAN furnished in the return is yours..

riyaz shaikh

student

77 Points Posted on 02 November 2010

in acknowledment your name must be write and in computation of income, P/L A/C, AND BALANCE SHEET UR NAME AND NAME OF BUSIINESS SHOULD BE PRINT . BANK WILL BE ACCEPT UR PROOF.

rohan_1987

Proprietor

26 Points Posted on 02 November 2010

Thanks Riyaz for your help.

CA Lakshman M

Mphasis an HP Company

72 Points Posted on 02 November 2010

Hi!

Your ITR 4 return is a complete proof for your business. Supporting to it, U have your PAN card and for sole proprietorship concerns it is ONE MAN SHOW and U are that sole person.

You can boldly submit the ITR to the bank as a proof.

Best wishes!